NOTICE DATE: December 20, 2024

NOTICE TYPE: M-D122024-01 Contracts / RFP

SHORT DESCRIPTION: Issuance of Request for Proposal for Must-Run Alternative to the Life Cycle Power Mobile Generation Solution and Braunig Units 1 & 2

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: December 20, 2024 and thereafter 

LONG DESCRIPTION: After receiving Notifications of Suspension of Operations (NSOs) from CPS Energy in March 2024 regarding the planned retirement of the three Braunig Generation Resources (BRAUNIG_VHB 1, BRAUNIG_VHB2, and BRAUNIG_VHB3), ERCOT sought proposals from Qualified Scheduling Entities (QSE) for one or more Must-Run Alternative (MRA) Resources that would provide a more cost-effective alternative to the provision of Reliability Must Run (RMR) service by one or more of the Braunig Resources.  ERCOT did not receive any qualified proposals in response to that RFP, and on December 3, 2024, the ERCOT Board of Directors voted to approve an RMR Agreement for BRAUNIG_VHB3 and to defer a decision on BRAUNIG_VHB 1 and BRAUNIG_VHB2 (Units 1 and 2).

Because ERCOT System performance remains materially impacted by the retirement of Units 1 and 2, ERCOT is exploring solutions to compensate for the retirement of these units.  Pursuant to its broad reliability authority, ERCOT has begun discussions with CenterPoint Energy Houston Electric, LLC (CenterPoint), CPS Energy, and Prime Power Solutions, LLC, dba Life Cycle Power (Life Cycle), to explore the idea of temporarily using 15 mobile generators that CenterPoint is currently leasing from Life Cycle as an alternative to committing Braunig Units 1 and 2 through an RMR agreement.  This potential solution is still being developed, but in the interest of time, ERCOT has issued a Request for Proposal (RFP) seeking one or more MRAs that may be more cost-effective than contracting for the use of the Life Cycle mobile generators or committing Units 1 and 2 through an RMR Agreement.  The RFP can be found on ERCOT’s website.

The characteristics and operating parameters of the Life Cycle generators, as well as desired characteristics and operating parameters of MRA proposals, can be found in the RFP. Deadlines, including those for submitting a mandatory Statement of Intent (January 10, 2025) and for submitting a proposal (January 15, 2025), are addressed in the RFP and should be consulted by any QSE interested in responding to the RFP. 

The costs, benefits, and risks of any eligible MRA proposal will be evaluated and compared to the costs, benefits, and risks of other proposals, the Life Cycle mobile generation solution, and committing Units 1 and 2 through an RMR agreement.  ERCOT anticipates presenting the results of its analysis of these options at the February 4, 2025 meeting of the ERCOT Board of Directors.  

CONTACT: Stakeholder inquiries concerning this RFP must be directed in writing to Jason Terrell, ERCOT Manager of Procurement and Contract Administration, at jason.terrell@ercot.com.  

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